Chester Bancorp (OTCMKTS:CNBA) vs. Provident Financial Services (NYSE:PFS) Financial Review

Provident Financial Services (NYSE:PFS) and Chester Bancorp (OTCMKTS:CNBA) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

72.0% of Provident Financial Services shares are held by institutional investors. 4.3% of Provident Financial Services shares are held by insiders. Comparatively, 38.8% of Chester Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Provident Financial Services and Chester Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Provident Financial Services	0	2	2	0	2.50
Chester Bancorp	0	0	0	0	N/A

Provident Financial Services currently has a consensus price target of $17.75, suggesting a potential upside of 21.83%.

Earnings and Valuation

This table compares Provident Financial Services and Chester Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Provident Financial Services	$479.28 million	2.30	$128.40 million	$1.71	8.52
Chester Bancorp	N/A	N/A	N/A	N/A	N/A

Provident Financial Services has higher revenue and earnings than Chester Bancorp.

Profitability

This table compares Provident Financial Services and Chester Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Provident Financial Services	18.46%	7.88%	0.93%
Chester Bancorp	N/A	N/A	N/A

Dividends

Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 6.6%. Chester Bancorp pays an annual dividend of $0.60 per share. Provident Financial Services pays out 56.1% of its earnings in the form of a dividend.

Summary

Provident Financial Services beats Chester Bancorp on 7 of the 9 factors compared between the two stocks.

About Provident Financial Services

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

About Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.